Executives at QBE Re noted that while they have seen some market softening, it remains manageable where rates are adequate, with some pricing pressures expected in property at 1.1, the casualty market to remain broadly stable, and a focus on discipline and long-term partnerships in specialty lines.
He said, “We have seen some market softening, but it is manageable where rates are adequate. Structures are holding firm. The reinsurance industry has responded smartly to the wildfires. Buyers are getting savvier, favouring balance sheet strength and support across multiple lines, over potential short-term price discounts as new capital comes to market. They have moved from a transactional view to a partnership perspective, valuing consistency, breadth of offering, and the security of a strong balance sheet over just price.
“In the end, it is the commitment to long-term stability that will ensure enduring success, far beyond the reach of short-term tactics.”
Building on this, Abdallah Balbeisi, Executive Director – EMEA, noted that Europe has experienced a good year in terms of natural catastrophe losses and expects some pricing pressure at the upcoming January 2026 renewals.
“That said, the US drives the industry’s capital allocation and requirements so rates will also be impacted by the performance of property reinsurance through the US wind season, exacerbated by those heavy wildfire losses in the US in Q1,” he explained.
Balbeisi highlighted the current excess capital in the reinsurance industry but cautioned that the situation can change quickly.
“The impact of climate change and the increasing frequency of secondary perils remains a concern —particularly in Europe. We must be cautious not to let a year without significant secondary losses distract us from the long-term trend that began several years ago.
“I am convinced that climate change will continue to intensify, and we will experience years marked by a high frequency of severe convective storms. That’s why I continue to emphasise strong underwriting discipline within my team, especially regarding terms and conditions in the Property CAT business.”
We also spoke with Andy Richardson, Executive Director – Global Property, who discussed how QBE Re has spent the last three underwriting cycles adjusting volatility and balance in its property book, significantly reshaping the portfolio.
“A large part of this has been in ‘non-peak’ regions where the propensity for significant model and data-capture miss exists,” said Richardson.
He continued, “It has been gratifying to see that the US reinsurance market has responded responsibly to both small and large losses in all different forms of perils by raising attachment points and risk- adjusted pricing improvements.
“In Europe, we continue to focus on providing capacity for larger scale events such as pan-European wind and earthquake, whilst ensuring we are able to price adequately for secondary perils where we do provide cover.”
Richardson underscored QBE Re’s continued disciplined approach to client selection, noting that growth has been selective in property catastrophe.
Beyond property and property cat, which often dominate headlines, we spoke with Jane Farren, Executive Director – Global Casualty, about the casualty reinsurance market outlook. Farren expects the market to remain broadly stable yet nuanced in 2026, one where differentiation, analytics, and long-term relationships will shape outcomes on both sides of the table.
She said, “Cedents are retaining more risk and placing less reinsurance, which puts some pressure on terms but also creates a flight to quality. Clients are concentrating their reinsurance purchases among highly rated partners they view as stable, consistent, and able to deliver value beyond just capacity.
“In this environment, pricing is increasingly tied to uncertainty around risk, holding firm where forward-looking trends and development patterns are harder to predict, but more competitive where risks are well understood and supported by credible data.”
Farren added that ceding commissions will likely remain “relatively sticky,” even against a backdrop of prior-year development, given the commercial supply-and-demand dynamics in the casualty reinsurance space.
“Looking ahead, there are a few factors to watch closely. Any softening in the property market may lead more reinsurers to pivot their attention toward casualty, where rate momentum has persisted. While the impact is not yet being felt, the growing use of sidecar structures could influence market dynamics depending on how much additional capacity enters the space. Against this backdrop, maintaining limit discipline will be critical. Reinsurers will need to be thoughtful about where they allocate capacity, ensuring alignment with segments where risk is well understood and returns are sustainable. Taken together, these forces point to a stable but nuanced market in 2026, one where differentiation, analytics, and long-term relationships will shape outcomes on both sides of the table,” she said.
On specialty lines, Shane Lawlor, Executive Director – Global Specialty at QBE Re, highlighted the significant challenges faced by reinsurers and their cedants amid increasing global geopolitical volatility and the evolving US tariff regime.
“However, they have also provided vital lessons for reinsurers,” explained Lawlor. “Specifically, the Russian invasion of Ukraine and the associated impacts on specialty lines made clear what cedants need to do on rates, terms and conditions, managing aggregations and monitoring their exposures. It is vital that cedants and reinsurers maintain that discipline.”
He stated that this will create opportunities as cedants look for consistent reinsurer partners in these increasingly volatile times.
Lawlor emphasised that QBE Re is seeking long-term partners in specialty lines who exercise strong underwriting discipline and where the company can write across their portfolios.
He added, “We plan to further increase our product offering by expanding our Credit portfolio next year.
“In Cyber, as a long-term partner, we want to make sure rate adequacy remains robust and the market avoids the kinds of peaks and troughs in both coverage and price that keep new buyers from coming to the table.
“We especially value clients that are diversifying away from saturated markets like the US and designing products that meet clients’ needs.”
Killourhy also commented that long-term resilience remains central to QBE Re’s approach. He stated that for both buyers and sellers of reinsurance, building resilience into their programs and choice of partners is paramount.
“Insurers must focus on long-term stability, while reinsurers need to be consistent, reliable, and diversified partners, not just players in the market’s ups and downs,” he said.
“Capital remains a perennial challenge. Despite the current surplus, sharp rate reductions haven’t materialized. However, volatility persists, and if we let the cycle slide, we risk losing the confidence of those who trust us with their capital. Without sustained discipline, the industry faces the dual threat of capital exiting and new capital hesitating to enter. Our focus must be on long-term resilience to ensure enduring relationships when the market turns.
“The world is becoming riskier, and the risk landscape is evolving rapidly. This presents a real opportunity for our industry to provide long-term stability in an increasingly volatile environment. Reinsurers must move beyond old habits like low attachments, soft wordings, and transactional renewals. We need to build a sustainable, resilient, data-driven model with partnership at its core. Let’s build something better,” added Killourhy.
For insurers and reinsurers, emerging technologies, such as AI, present an opportunity to improve operations and competitiveness in a rapidly changing world. In light of this, we questioned Killourhy on how QBE Re is utilising emerging tech.
“Let’s be clear: in today’s world, standing still is falling behind. That’s why, over the past year, we’ve doubled down on data and analytics, driven by fresh leadership in portfolio management and actuarial analytics. We are setting the ambition that we want to be able to assess the marginal impact on our portfolio, for the vast majority of our business pre-bind.
“In Property, we’ve sharpened our analytics for deploying Probable Maximum Loss (PML), giving us a holistic view of how underwriting decisions impact our business. In Casualty, we’re building exposure management tools that ingest bordereaux and deliver real-time, granular insights—by insured, geography, and industry. We will also be rolling out similar capabilities in Specialty. For us, portfolio balance is everything, but we can only hold ourselves true to this if we have the appropriate tools to interrogate our data asset.
“Our mission is simple: empower underwriters to make fast, informed, data-driven decisions. That’s how we’ll drive operational efficiency, show-up for our partners, and make sure we are putting long term resilience at the heart of what we do,” concluded Killourhy.
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